- America’s Car-Mart, Inc. (NASDAQ:CRMT) stocks are sliding after reporting the fourth quarter of FY23.
- The automotive retailer registered adjusted earnings per share of $0.32, which missed the analyst consensus of $1.13.
- Revenues rose 12.2% year-over-year to $388.3 million, beating the estimate of $352.87 million.
- The quarterly performance was partly hampered by ongoing disruption in the used car market, which challenged the company to purchase quality vehicles at affordable prices.
- Provision for credit losses as a percentage of sales was 30.4% compared to 23.1% Y/Y.
- Gross profit per car sold dipped nearly 3% Y/Y to $6,354 compared to $6,545 a year ago.
- The customer count increased by 7.6% to 102,305 active customers. Customers served per dealership was 656, compared to 617 Y/Y.
- “Although currently earning a lower return, we are doing so with an eye to growing our business over the long term at far higher margins,” said CEO Jeff Williams. “We have the ability to choose short-term profitability over long-term gains,” he added.
- CRMT Price Action: America’s Car-Mart shares are trading lower by 10.82% to $79.65 at publication Wednesday.
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Photo: Courtesy America’s Car-Mart
